diff --git a/extensions/git/package-lock.json b/extensions/git/package-lock.json
index 6353cbc2753..b552ce9fa5b 100644
--- a/extensions/git/package-lock.json
+++ b/extensions/git/package-lock.json
@@ -11,7 +11,6 @@
       "dependencies": {
         "@joaomoreno/unique-names-generator": "^5.2.0",
         "@vscode/extension-telemetry": "^0.9.8",
-        "@vscode/fs-copyfile": "2.0.0",
         "byline": "^5.0.0",
         "file-type": "16.5.4",
         "picomatch": "2.3.1",
@@ -219,19 +218,6 @@
         "vscode": "^1.75.0"
       }
     },
-    "node_modules/@vscode/fs-copyfile": {
-      "version": "2.0.0",
-      "resolved": "https://registry.npmjs.org/@vscode/fs-copyfile/-/fs-copyfile-2.0.0.tgz",
-      "integrity": "sha512-ARb4+9rN905WjJtQ2mSBG/q4pjJkSRun/MkfCeRkk7h/5J8w4vd18NCePFJ/ZucIwXx/7mr9T6nz9Vtt1tk7hg==",
-      "hasInstallScript": true,
-      "license": "MIT",
-      "dependencies": {
-        "node-addon-api": "^7.0.0"
-      },
-      "engines": {
-        "node": ">=22.6.0"
-      }
-    },
     "node_modules/byline": {
       "version": "5.0.0",
       "resolved": "https://registry.npmjs.org/byline/-/byline-5.0.0.tgz",
@@ -288,12 +274,6 @@
         "node": ">=16"
       }
     },
-    "node_modules/node-addon-api": {
-      "version": "7.1.1",
-      "resolved": "https://registry.npmjs.org/node-addon-api/-/node-addon-api-7.1.1.tgz",
-      "integrity": "sha512-5m3bsyrjFWE1xf7nz7YXdN4udnVtXK6/Yfgn5qnahL6bCkf2yKt4k3nuTKAtT4r3IG8JNR2ncsIMdZuAzJjHQQ==",
-      "license": "MIT"
-    },
     "node_modules/peek-readable": {
       "version": "4.1.0",
       "resolved": "https://registry.npmjs.org/peek-readable/-/peek-readable-4.1.0.tgz",
diff --git a/extensions/git/package.json b/extensions/git/package.json
index f0e49309944..1fbac49569f 100644
--- a/extensions/git/package.json
+++ b/extensions/git/package.json
@@ -4346,7 +4346,6 @@
   "dependencies": {
     "@joaomoreno/unique-names-generator": "^5.2.0",
     "@vscode/extension-telemetry": "^0.9.8",
-    "@vscode/fs-copyfile": "2.0.0",
     "byline": "^5.0.0",
     "file-type": "16.5.4",
     "picomatch": "2.3.1",
diff --git a/extensions/git/src/repository.ts b/extensions/git/src/repository.ts
index 53db3e48495..bd6b6a5c7ff 100644
--- a/extensions/git/src/repository.ts
+++ b/extensions/git/src/repository.ts
@@ -3,7 +3,6 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { cp } from '@vscode/fs-copyfile';
 import TelemetryReporter from '@vscode/extension-telemetry';
 import { uniqueNamesGenerator, adjectives, animals, colors, NumberDictionary } from '@joaomoreno/unique-names-generator';
 import * as fs from 'fs';
@@ -1931,76 +1930,59 @@ export class Repository implements Disposable {
 			gitIgnoredFiles.delete(uri.fsPath);
 		}
 
-		// Compute the base directory for each glob pattern (the fixed
-		// prefix before any wildcard characters). This will be used to
-		// optimize the upward traversal when adding parent directories.
-		const filePatternBases = new Set<string>();
-		for (const pattern of worktreeIncludeFiles) {
-			const segments = pattern.split(/[\/\\]/);
-			const fixedSegments: string[] = [];
-			for (const seg of segments) {
-				if (/[*?{}[\]]/.test(seg)) {
-					break;
-				}
-				fixedSegments.push(seg);
-			}
-			filePatternBases.add(path.join(this.root, ...fixedSegments));
-		}
-
-		// Add the folder paths for git ignored files, walking
-		// up only to the nearest file pattern base directory.
+		// Add the folder paths for git ignored files
 		const gitIgnoredPaths = new Set(gitIgnoredFiles);
 
 		for (const filePath of gitIgnoredFiles) {
 			let dir = path.dirname(filePath);
-			while (dir !== this.root && !gitIgnoredPaths.has(dir)) {
+			while (dir !== this.root && !gitIgnoredFiles.has(dir)) {
 				gitIgnoredPaths.add(dir);
-				if (filePatternBases.has(dir)) {
-					break;
-				}
 				dir = path.dirname(dir);
 			}
 		}
 
-		// Find minimal set of paths (folders and files) to copy. Keep only topmost
-		// paths — if a directory is already in the set, all its descendants are
-		// implicitly included and don't need separate entries.
-		let lastTopmost: string | undefined;
-		const pathsToCopy = new Set<string>();
-		for (const p of Array.from(gitIgnoredPaths).sort()) {
-			if (lastTopmost && (p === lastTopmost || p.startsWith(lastTopmost + path.sep))) {
-				continue;
-			}
-			pathsToCopy.add(p);
-			lastTopmost = p;
-		}
-
-		return pathsToCopy;
+		return gitIgnoredPaths;
 	}
 
 	private async _copyWorktreeIncludeFiles(worktreePath: string): Promise<void> {
-		const worktreeIncludePaths = await this._getWorktreeIncludePaths();
-		if (worktreeIncludePaths.size === 0) {
+		const gitIgnoredPaths = await this._getWorktreeIncludePaths();
+		if (gitIgnoredPaths.size === 0) {
 			return;
 		}
 
 		try {
-			const startTime = performance.now();
+			// Find minimal set of paths (folders and files) to copy.
+			// The goal is to reduce the number of copy operations
+			// needed.
+			const pathsToCopy = new Set<string>();
+			for (const filePath of gitIgnoredPaths) {
+				const relativePath = path.relative(this.root, filePath);
+				const firstSegment = relativePath.split(path.sep)[0];
+				pathsToCopy.add(path.join(this.root, firstSegment));
+			}
+
+			const startTime = Date.now();
 			const limiter = new Limiter<void>(15);
-			const files = Array.from(worktreeIncludePaths);
+			const files = Array.from(pathsToCopy);
 
 			// Copy files
-			const results = await Promise.allSettled(files.map(sourceFile => {
-				return limiter.queue(async () => {
+			const results = await Promise.allSettled(files.map(sourceFile =>
+				limiter.queue(async () => {
 					const targetFile = path.join(worktreePath, relativePath(this.root, sourceFile));
 					await fsPromises.mkdir(path.dirname(targetFile), { recursive: true });
-					await cp(sourceFile, targetFile, { force: true, recursive: true, verbatimSymlinks: true });
-				});
-			}));
+					await fsPromises.cp(sourceFile, targetFile, {
+						filter: src => gitIgnoredPaths.has(src),
+						force: true,
+						mode: fs.constants.COPYFILE_FICLONE,
+						recursive: true,
+						verbatimSymlinks: true
+					});
+				})
+			));
 
 			// Log any failed operations
 			const failedOperations = results.filter(r => r.status === 'rejected');
-			this.logger.info(`[Repository][_copyWorktreeIncludeFiles] Copied ${files.length - failedOperations.length}/${files.length} folder(s)/file(s) to worktree. [${(performance.now() - startTime).toFixed(2)}ms]`);
+			this.logger.info(`[Repository][_copyWorktreeIncludeFiles] Copied ${files.length - failedOperations.length}/${files.length} folder(s)/file(s) to worktree. [${Date.now() - startTime}ms]`);
 
 			if (failedOperations.length > 0) {
 				window.showWarningMessage(l10n.t('Failed to copy {0} folder(s)/file(s) to the worktree.', failedOperations.length));